Lower middle income | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Lower middle income
Records
63
Source
Lower middle income | Mineral rents (% of GDP)
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970 0.74069185
1971 0.51447743
1972 0.53915307
1973 0.93829191
1974 1.23036584
1975 0.73881545
1976 0.60768703
1977 0.71297725
1978 0.38039725
1979 0.5463802
1980 0.60596984
1981 0.39866444
1982 0.32606703
1983 0.33751611
1984 0.26369595
1985 0.27894847
1986 0.24737954
1987 0.26732081
1988 0.51494477
1989 0.49909092
1990 0.38447015
1991 0.33650113
1992 0.54210819
1993 0.32829923
1994 0.31681557
1995 0.25828459
1996 0.19012999
1997 0.16534252
1998 0.18449551
1999 0.15523328
2000 0.17168167
2001 0.15607894
2002 0.16735998
2003 0.15125505
2004 0.25029119
2005 0.54683942
2006 0.82524364
2007 1.29277238
2008 1.57631849
2009 0.85884834
2010 1.34654552
2011 1.47361634
2012 0.94766403
2013 0.87745481
2014 0.60824324
2015 0.36115003
2016 0.43266276
2017 0.58187746
2018 0.53919351
2019 0.48375254
2020 0.55069265
2021 1.44007988
2022

Lower middle income | Mineral rents (% of GDP)

Mineral rents are the difference between the value of production for a stock of minerals at world prices and their total costs of production. Minerals included in the calculation are tin, gold, lead, zinc, iron, copper, nickel, silver, bauxite, and phosphate. Development relevance: Accounting for the contribution of natural resources to economic output is important in building an analytical framework for sustainable development. In some countries earnings from natural resources, especially from fossil fuels and minerals, account for a sizable share of GDP, and much of these earnings come in the form of economic rents - revenues above the cost of extracting the resources. Natural resources give rise to economic rents because they are not produced. For produced goods and services competitive forces expand supply until economic profits are driven to zero, but natural resources in fixed supply often command returns well in excess of their cost of production. Rents from nonrenewable resources - fossil fuels and minerals - as well as rents from overharvesting of forests indicate the liquidation of a country's capital stock. When countries use such rents to support current consumption rather than to invest in new capital to replace what is being used up, they are, in effect, borrowing against their future. Statistical concept and methodology: The estimates of natural resources rents are calculated as the difference between the price of a commodity and the average cost of producing it. This is done by estimating the price of units of specific commodities and subtracting estimates of average unit costs of extraction or harvesting costs. These unit rents are then multiplied by the physical quantities countries extract or harvest to determine the rents for each commodity as a share of gross domestic product (GDP).
Publisher
The World Bank
Origin
Lower middle income
Records
63
Source